Expansion might bring jobs

Mishawaka agrees to five-year property tax break for Patrick Metals.

Mishawaka agrees to five-year property tax break for Patrick Metals.

June 21, 2006|SUE LOWE Tribune Staff Writer

MISHAWAKA -- Patrick Metals will be expanding its Mishawaka plant, which could mean 25 to 30 new jobs. The company will spend $4.6 million on that plant rather than expanding elsewhere. The promise came Monday night when members of the Mishawaka Common Council agreed to give the company a property tax break. The company had considered other locations for the expansion but made the commitment to Mishawaka on Monday. Under the five-year tax abatement, the company will pay no property taxes for one year on $3.3 million worth of equipment and a $1.3 million building expansion to house it. After that year, the taxes will gradually rise until the company is paying full property taxes in the sixth year. The only vote against the abatement came from James Benjamin, D-5th, who complimented company officials on the information provided but said the abatement would be "$500,000 in corporate welfare." Council President Gregg Hixenbaugh, D-at large, said personally he is opposed to tax abatements. "But as elected officials we have to bow to the demands of the marketplace," he said. He voted for the abatement. Laura Wagley, Mishawaka's economic development director, wrote in a letter to council members that the Indiana Economic Development Corporation has made an incentive offer to Patrick Metals. It will remain confidential until the company accepts it in writing. Staff writer Sue Lowe: slowe@sbtinfo.com (574) 235-6557